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Golar LNG (GLNG) Stock Up 28.3% in the Past Month: Here's Why

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Shares of Golar LNG (GLNG - Free Report) have displayed an uptrend on the bourses lately, gaining 28.3% in a month’s time, outperforming its industry’s 9.3% uptick.

Zacks Investment Research
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Let’s look into the factors that are aiding this currently Zacks Rank #2 (Buy) stock.

Upward Estimate Revision: The Zacks Consensus Estimate for the GLNG stock’s current-quarter earnings has been revised 31.6% upward over the past 60 days. For 2022, the consensus mark for earnings has moved 90.24% north in the same time frame. Favorable estimate revisions reflect brokers’ confidence in the stock.

Given the wealth of information at the brokers' disposal, investors should be best guided by their expert advice and follow the direction of their estimate revisions. This is because the same serves as an important determinant of the stock price.

Golar LNG’s Momentum Score of B further highlights its short-term attractiveness.

Solid Industry Rank: The industry to which GLNG belongs, currently has a Zacks Industry Rank of 90 (of 250 plus groups). Such a solid rank places GLNG in the top 36% of the Zacks industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.

A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Therefore, reckoning the industry’s performance becomes imperative.

Robust LNG Demand: The uptick in demand for liquefied natural gas (LNG) has been a boon for Golar LNG so far. Data from the Energy Information Administration (EIA) also reflects the positive momentum. According to the agency, U.S. LNG exports have increased sharply since 2016.

The Russia-Ukraine war strengthened the already buoyant LNG demand scenario. Demand for LNG vessels is likely to get stronger in the near future, mainly amid the Russia-Ukraine war. This is likely to happen as the European countries look for gas supplies outside Russia.

Other Stocks Worth a Look

Investors interested in the Zacks Transportation sector may also consider USA Truck and GATX Corp. (GATX - Free Report) .

USA Truck presently sports a Zacks Rank #1 (Strong Buy). USAK’s earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters (meeting the mark in one), the average surprise being 64.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of USA Truck have rallied more than 40% in the past six months. Improvement in the freight market conditions is aiding the USAK stock immensely.

GATX Corp. (GATX - Free Report) currently flaunts a Zacks Rank of 1. GATX has an impressive surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 27.7%.

Shares of GATX have appreciated more than 39% in the past six months. We are impressed with its efforts to reward its shareholders through dividends and buybacks.


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